MacarthurCook Property Securities (MPS)

[KopiKat]

Some interesting development is going on in ASX, in case anyone's vested. SGX Annc doesn't include (yet?) the following one in ASX,

http://www.asx.com.au/asxpdf/20120404/pd...vrm343.pdf

Some background,

The manager of MPS is AIMS. AIMS bought over MacarthurCook during one of the financial crisis (AFC?) and MI-REIT (now AIMSAMPReit) and MPS were 2 of the byproducts where they'd assumed control of the mgmt co. While they'd done some work on MI-REIT by bringing in a new partner AMP and done some cleaning up (many prior shareholders would call it value destruction), they'd not done much at MPS except to sell assets at firesale prices to bring down debts.

So, now a show-down with a minority shareholder (<10%), who apparently also control an entity that's being sued by MPS. Very interesting soap opera...

<Not Vested> - Used to Be

[propertyinvestor]

AIMS is an entity I WILL NEVER TRUST. Made MI-REIT ISSUE NEW SHARES TO THEM at 28cents WHEN MI REIT NAV WAS $1.10 and FURTHER DILUTE ALL SHAREHOLDERS BY PROPOSING RIGHTS ISSUE to be issued at 16cents each. F***** AIMS.

[lonewolf]

I find AIMS' response to be cryptic and insincere. As the entity responsible for the fund, makes a response to an announcement on ASX but did not reproduce that announcement.

AIMS has requested for a trading halt to trading of the shares. Not very sure whether the trading halt is related to the earlier action by Blackwall.

If Blackwall is correct, there is a potential 81% upside from its current level if the fund assets are sold and distributed. The fact that the price has not spiked up probably indicated that Mr Market does not believe in Blackwell's valuation.

[Nick]

Pursuant to Rule 753(2), the board of MacarthurCook Fund Management Limited as the Responsible Entity for MacarthurCook Property Securities Fund seeks an immediate Trading halt of its shares pending release of an announcement regarding a capital raising which the Company expects to be make available to the market no later than the commencement of open trade on Friday 20 April 2012.

The immediate request for a trading halt is part of an ASIC direction in order that the Responsible Entity for MacarthurCook Property Securities Fund may approach and seek sub- underwriting arrangements from the Funds Top (5) institutional investors.

Given that sensitivity of these discussions we are concerned of loosing confidentiality if the stock is not placed on a trading halt.

The Trading halt is requested over a period of (2) days in order that discussions with the institutional investors may be completed. The Company may request an extension or a voluntary suspension which will be discussed with your office shortly.

Placements or rights ???

(Not Vested)

[KopiKat]

Pursuant to Rule 753(2), the board of MacarthurCook Fund Management Limited as the Responsible Entity for MacarthurCook Property Securities Fund seeks an immediate Trading halt of its shares pending release of an announcement regarding a capital raising which the Company expects to be make available to the market no later than the commencement of open trade on Friday 20 April 2012.

The immediate request for a trading halt is part of an ASIC direction in order that the Responsible Entity for MacarthurCook Property Securities Fund may approach and seek sub- underwriting arrangements from the Funds Top (5) institutional investors.

Given that sensitivity of these discussions we are concerned of loosing confidentiality if the stock is not placed on a trading halt.

The Trading halt is requested over a period of (2) days in order that discussions with the institutional investors may be completed. The Company may request an extension or a voluntary suspension which will be discussed with your office shortly.

Placements or rights ???

(Not Vested)

New ASX Annc on 18-Apr. Upgraded from Trading Halt to Voluntary Suspension (till 20-Apr latest). Finalising some Capital Raising detail.

Hah! No corrsponding SGX Annc, continue to keep shareholders here in the dark...

[propertyinvestor]

Is there any annoucement on the ASX Side? Can check ASX website for announcement.

[KopiKat]

Placements or rights ???

Interesting saga continues...

13-for-15 Non-Renounceable Rights @ A$0.035 or S$0.0454

Chk out SGX Annc for more

[lonewolf]

And I thought the fight between Cambridge and AIMSAMP over MI-REIT was bad enough. This looks a whole lot worse!

In fact, its dejavu all over again. For MPS unitholders, its like the devil or the deep blue sea; frying pan or fire; damn-if-u-do-damn-if-u-dun situation. Very difficult decision to make. Worse possible reason for equity raising --> debt repayment.

[KopiKat]

And I thought the fight between Cambridge and AIMSAMP over MI-REIT was bad enough. This looks a whole lot worse!

In fact, its dejavu all over again. For MPS unitholders, its like the devil or the deep blue sea; frying pan or fire; damn-if-u-do-damn-if-u-dun situation. Very difficult decision to make. Worse possible reason for equity raising --> debt repayment.

If the lessons learnt from the AIMSAMP saga can be applied here, there could be $$ to be made. Some key differences,

1) Assets are mainly in Australia Unlisted Property Trusts (hard for us to know / check valuations)
2) Very illiquid in SGX
3) Funds raised from Rights is only A$5.869M and reduces Gearing from 25.93% to 19.02%. Likely enough to get their bankers off their back so they need not continue to sell assets at fire-sale prices. But, look-through Gearing (due to their assets being highly geared) is still high at 60.84% ie risk of their Highly Geared assets becoming 'bankrupt' which affects NTA.
4) Legal fight with BlackWall

Let's circle around like vultures or worst case, wait for the dust to settle (can wait to see if they really resume Div Payout in 2013 and the Yield).

In the meantime, get your popcorn ready and patiently wait for the soap opera to unfold...

[lonewolf]

Unfortunately at the moment I feel like the circling vultures is eyeing the flesh of my bone-thin body.

Given the steep discount to the current price; and an even steeper discount to my initial purchase, I will take the opportunity to average down in a significant manner. A case of desperation and throwing bad money after bad money? Maybe. We shall see how it goes.

In any case, the rights may not go forward if AIMS can't make a case.